This invention relates to a device and method for recording driving characteristics. More particularly, this invention relates to a method and device for recording driving characteristics utilized to monitor and compile vehicle usage data for determining an insurance premium.
Vehicle insurance is currently determined substantially through the use of historical data combined with information from other sources concerning the vehicle owner and operator. The information concerning the operator typically includes general vehicle usage information such as how the operator typically uses the vehicle, such as for going back and forth to work. The places and locations in which the vehicle is utilized by the operator are also considered in the determination of the vehicle insurance premium.
A principal disadvantage with this method of insurance premium determination is that much of this information is not verifiable. In other words, an operator may exaggerate or under estimate the actual usage of the vehicle. Accordingly, an insurance provider is therefore at a disadvantage in applying a premium based on predicted or non-verifiable information. Some of these instances can be corrected through the periodic updating of information through available driving records such as available from state and local governments to reveal driving violations or accidents.
However, in the absence of such data the actual operating characteristics and use of a vehicle are not easily determinable. Accordingly, the insurance provider relies on the operator provided information.
Accordingly, it would be beneficial to develop a process and device for installation within a vehicle that could easily gather useful data that can be utilized for the determination of insurance premiums based on actual vehicle use.